Can I cancel a lease due to late delivery?

[tygar2]

Hello all,

Vehicle was registered end of January and earliest delivery was around end of February. This was delayed and new agreed date was 30 March. Coronavirus happened and date moved to 14 April which did not happen. As it stands, understandably, no delivery has been given.

I paid the broker fees (£299) but am not paying monthlies as I am yet to receive the vehicle. my question is where do I stand regarding cancelling? The lease company are saying the lease will start when I receive the vehicle and run for the agreed term.

I was also advised that even though the vehicle has not been delivered I will still be responsible for servicing it when it reached its one year anniversary from registration. This does not make sense to me and is one of the reasons I want out. The open ended situation does not suit my circumstances and I would rather cancel.

Legally, do I have a leg to stand on?

[Obee72]

Have you signed anything ? If so, read the T&C's of what you've signed as that should state your rights.

If you haven't I'm guessing worse case scenario is loss of deposit depending on the T&C's of that.

Either way read through the documents you've been sent as I suspect the answer will lie within.

[Wacky Racer]

tygar2 said:

Hello all,

Vehicle was registered end of January and earliest delivery was around end of February. This was delayed and new agreed date was 30 March. Coronavirus happened and date moved to 14 April which did not happen. As it stands, understandably, no delivery has been given.

I paid the broker fees (£299) but am not paying monthlies as I am yet to receive the vehicle. my question is where do I stand regarding cancelling? The lease company are saying the lease will start when I receive the vehicle and run for the agreed term.

I was also advised that even though the vehicle has not been delivered I will still be responsible for servicing it when it reached its one year anniversary from registration. This does not make sense to me and is one of the reasons I want out. The open ended situation does not suit my circumstances and I would rather cancel.

Legally, do I have a leg to stand on?

I can't see what your problem is tbh, re the servicing.

If it was a three year lease you would normally have to pay for three years servicing.....(You may get away with two if you are lucky and hand the car back a week or to early)

Assuming you picked the car up four months from registration, you would still only be responsible for the same.

That's my understanding anyway.

[tygar2]

Obee72 said:

Have you signed anything ? If so, read the T&C's of what you've signed as that should state your rights.

If you haven't I'm guessing worse case scenario is loss of deposit depending on the T&C's of that.

Either way read through the documents you've been sent as I suspect the answer will lie within.

Everything was signed and all that remained was delivery of vehicle. Had a look and documents only cover cooling off period, penalties I can get etc but says nothing about failure to deliver vehicle to me.

The result is I am now without a car and no anticipated delivery date but need one for work so I'm planning to get used car..

Edited by tygar2 on Monday 27th April 14:23

[tygar2]

Wacky Racer said:

I can't see what your problem is tbh, re the servicing.

If it was a three year lease you would normally have to pay for three years servicing.....(You may get away with two if you are lucky and hand the car back a week or to early)

Assuming you picked the car up four months from registration, you would still only be responsible for the same.

That's my understanding anyway.

That's correct - I planned to return early but will not be able to do that. Also, starting the lease deal later forces me to have a lease in place beyond the originally agreed date which does not suit me.

[pb8g09]

Not sure if I misread and answered already but have to called up to make a big stink on the phone and ‘demanded’ to cancel at no expense?

Might be worth seeing what they say when you’re on the phone to them if it’s not explicitly covered in the terms and conditions

[iphonedyou]

One of the reasons you want out is because you'll have to service the car?

[tygar2]

iphonedyou said:

One of the reasons you want out is because you'll have to service the car?

Yes but it's the minor reason. The second service will be expensive and I planned on returning 1 month early to avoid it.

Main reason for question is that they have failed to deliver a contract at the agreed time and I was wondering what my options are legally rather than emotionally, ethically etc. I am currently without a vehicle but sort of have my hands tied as I cannot get one elsewhere with this hanging over me - doesn't seem fair.

Shortcomings on my end would have result in financial penalties so was wondering where I stand. Example - if I lost my job mid contract I doubt I'd receive any sympathy and understanding.

Hope that makes sense. Anyone know?

[dmsims]

So there is absolutely nothing in the paperwork about failure to deliver?

[Dimebars]

If the car was registered January, why didn't they deliver in February?

You usually can't register a car unless it's in the country and 4-6 weeks from arriving in country to delivery shouldn't be hard

[tygar2]

Dimebars said:

If the car was registered January, why didn't they deliver in February?

You usually can't register a car unless it's in the country and 4-6 weeks from arriving in country to delivery shouldn't be hard

Pre-reg vehicle. There was a mix up somewhere but wasn't a big deal for me as had another vehicle so we agreed on end of March.

[tygar2]

dmsims said:

So there is absolutely nothing in the paperwork about failure to deliver?

Not that I can see and broker was rather mealy mouthed when I asked and seemed to say I am bound by agreement.

[babelfish]

tygar2 said:

dmsims said:

So there is absolutely nothing in the paperwork about failure to deliver?

Not that I can see and broker was rather mealy mouthed when I asked and seemed to say I am bound by agreement.

So they are saying you are bound to an agreement that they have failed to deliver on?

[cootuk]

Depending if you're a business or personal lease, wouldn't this come under the Supply of Goods and Services Act, or one of the Consumer Credit Acts, where goods should be supplied "within a reasonable time".
Force Majeure might be used as Covid has effectively stopped their ability to service the contract.

Edited by cootuk on Wednesday 29th April 09:16

[tygar2]

cootuk said:

Depending if you're a business or personal lease, wouldn't this come under the Supply of Goods and Services Act, or one of the Consumer Credit Acts, where goods should be supplied "within a reasonable time".
Force Majeure might be used as Covid has effectively stopped their ability to service the contract.

Edited by cootuk on Wednesday 29th April 09:16

Personal lease. I'm sure a lot of people are affected by this situation and we are going to hear more of this situation. I find it odd there is no clear guidance on this.

[cheeky_chops]

dmsims said:

So there is absolutely nothing in the paperwork about failure to deliver?

here is mine - Lex autolease.

"The time of delivery of the Vehicle will not be an essential and material condition of this Agreement but the Supplier will use all commercially reasonable endeavours to ensure that the Vehicle hired by the Customer hereunder is delivered to the Customer’s premises (or to another agreed location) on time"

[tygar2]

cheeky_chops said:

here is mine - Lex autolease.

"The time of delivery of the Vehicle will not be an essential and material condition of this Agreement but the Supplier will use all commercially reasonable endeavours to ensure that the Vehicle hired by the Customer hereunder is delivered to the Customer’s premises (or to another agreed location) on time"

Thanks.

Interesting - I read that to mean the agreement allows for vehicle to be delivered at a time that suits the supplier and that the contract starts then?

Taking it to the extreme, does that mean if someone has signed a contract to lease on a given day and the supplier runs into issues and is unable to deliver for 6 months/1 year or whatever the person is still bound by the contract AND has to honour the full duration of the contract though it now forces them to have the vehicle 6months /1 year beyond the agreed date? In those 6 months I would be walking because I'm stuck at the mercy of a supplier who failed to deliver? Seems rather one sided and not very legal. If I failed to take delivery at the agreed time or return a vehicle when due there would be hell to pay!

This scenerio is not too far fetched. Current lockdowns mean factory ordered vehicles are not actually being made at the morning leading to long backlogs when things get moving again. I would be more understanding at least they gave the option to honour the original agreed end date meaning at least they would honour some part of the original contract.

Watch this space. Interesting times ahead!

[Burwood]

tygar2 said:

cheeky_chops said:

here is mine - Lex autolease.

"The time of delivery of the Vehicle will not be an essential and material condition of this Agreement but the Supplier will use all commercially reasonable endeavours to ensure that the Vehicle hired by the Customer hereunder is delivered to the Customer’s premises (or to another agreed location) on time"

Thanks.

Interesting - I read that to mean the agreement allows for vehicle to be delivered at a time that suits the supplier and that the contract starts then?

Taking it to the extreme, does that mean if someone has signed a contract to lease on a given day and the supplier runs into issues and is unable to deliver for 6 months/1 year or whatever the person is still bound by the contract AND has to honour the full duration of the contract though it now forces them to have the vehicle 6months /1 year beyond the agreed date? In those 6 months I would be walking because I'm stuck at the mercy of a supplier who failed to deliver? Seems rather one sided and not very legal. If I failed to take delivery at the agreed time or return a vehicle when due there would be hell to pay!

This scenerio is not too far fetched. Current lockdowns mean factory ordered vehicles are not actually being made at the morning leading to long backlogs when things get moving again. I would be more understanding at least they gave the option to honour the original agreed end date meaning at least they would honour some part of the original contract.

Watch this space. Interesting times ahead!

Legally you could have backed out in February when they failed to deliver. But there is the law and there is a practical solution, being, recovery of the admin fees. If they wanted to impose the agreement on you now they could use the lock down. They may know they can sell it on. Either way you know they won't freely cough up the money put down. And that's the rub.

[tygar2]

Burwood said:

Legally you could have backed out in February when they failed to deliver. But there is the law and there is a practical solution, being, recovery of the admin fees. If they wanted to impose the agreement on you now they could use the lock down. They may know they can sell it on. Either way you know they won't freely cough up the money put down. And that's the rub.

It's that legal position that I am trying to get clarity on otherwise it appears down to how the broker feels.

[Burwood]

I believe you could cancel. It’s only reasonable. As mentioned getting your money back without a fight is another matter.

Just mail the broker and explain without being threatening and gauge the response